The Home Buyers' Plan (HBP) allows you to withdraw up to $60,000 from your RRSP tax-free if you're a first-time home buyer, provided you repay the amount over 15 years. If you're married or in a common-law relationship, each partner can withdraw up to $60,000 from their own RRSP, potentially giving you $120,000 combined for a down payment. This strategy can be especially powerful when combined with careful RRSP contribution timing to maximize both your tax refund and your home-buying power. This CRA rule may apply to you if you meet all of these conditions: - You haven't owned a principal residence in the four calendar years before the withdrawal - You are a Canadian resident - You intend to buy or build a qualifying home - The home will be your principal residence no later than one year after the withdrawal - You are not under a court order preventing you from withdrawing from your RRSP If you're married or common-law, both spouses can each withdraw up to $60,000 if both meet the criteria. This is one of the biggest advantages of the HBP for couples.
No, the CRA rule requires that you have not owned a principal residence in the four calendar years before the withdrawal. If you owned a home any time in those four years, you don't qualify for HBP, even if you sold it at a loss.
If you miss a repayment, the missed amount is added to your taxable income for that tax year, which could result in a significant tax bill. The CRA will send you a notice if you fall behind on repayments.
Yes, if you are both first-time home buyers according to CRA rules, each spouse can withdraw up to $60,000 from their own RRSP. This gives couples a combined $120,000 in tax-free withdrawal access.
Yes, HBP and FHSA are separate programs and can be used together. You can contribute to an FHSA and withdraw from your RRSP under HBP in the same year to maximize your down payment funds.
No, HBP withdrawals are not taxable. However, the repayment amounts you're required to make reduce your RRSP balance, and missed repayments are added back to your income.